Prime Minister Srettha Thavisin on Wednesday defended his decision to push for a higher daily minimum wage, saying it would “not be a disaster” for business owners.
He made the comments a day after a motion to acknowledge new daily minimum rates was removed from the agenda of the cabinet meeting.
Labour Minister Phiphat Ratchakitprakarn reportedly made the decision to withdraw the recommendation of the independent tripartite wage committee pending reconsideration.
Mr Srettha promised the matter would be concluded before the end of the month.
The national wage committee, made up of government officials, business and labour representatives, last week approved an average 2.4% hike in the minimum wage to between 330 and 370 baht per day, which the prime minister deemed too low.
“This government does not agree with (that hike),” Mr Srettha told a business forum, adding that the government had already reduced electricity and energy prices to support businesses.
“Thais need to have work with dignity.”
The Pheu Thai Party had campaigned earlier this year on a pledge to raise the minimum wage to 400 baht a day by the end of this year and to 600 baht by the end of its four-year term.
The last increase in the minimum wage, in October 2022, averaged 5% and brought rates to a range between 328 and 354 baht, depending on the province.
The Federation of Thai Industries has warned businesses would have to shoulder the costs of a higher minimum wage alongside higher borrowing costs, which could make Thai companies less competitive.
“Businesses will find that wage hike will not be a disaster, but will have a positive effect if done properly,” Mr Srettha said.
